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How will lifting US sanctions affect the Syrian economy and society?

  • Katia Ibrahim Katia Ibrahim
  • Source: Al Mayadeen English
  • 22 May 2025 12:42
7 Min Read

US President Donald Trump announced the lifting of sanctions on Syria during a visit to Riyadh, calling it a chance for national revival. Speaking to Al Mayadeen English, Syrians viewed the move as a long-overdue relief from years of hardship and isolation brought on by the sanctions.

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  • The US decision is still the most talked-about move among the Syrian people. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)
    The US decision is still the most talked-about move among the Syrian people. (Al Mayadeen English; Illustrated by Zeinab El-Hajj)

US President Donald Trump announced from Riyadh last week the lifting of sanctions on Syria, a surprise move following consultations with Saudi Crown Prince Mohammed bin Salman.

Trump said at an investment forum in Riyadh that those sanctions had served an important purpose, but that it was now time for Syria to move forward.

He added, "I will be ordering the cessation of sanctions against Syria in order to give them a chance at greatness; it's their time to shine. We're taking them all off. Good luck Syria, show us something very special."

Syrian President Ahmad al-Sharaa described the US decision as a "courageous and historic decision" that paves the way for alleviating the suffering of the Syrian people, saying that Syria celebrates not only the lifting of sanctions, but also "the return of fervent sentiments among the peoples of the region."

The Syrian people are optimistic!

The US decision is still the most talked-about move among the Syrian people.

It represents "a real glimmer of hope after 14 years of poverty, hunger, and deprivation" according to Ruba, a teacher at a Damascus school. She told Al Mayadeen English, "We hope that new generations would not experience what we’ve already endured. The lifting of sanctions will certainly contribute positively by alleviating the Syrian [people's] suffering. We hope that our children will soon have adequate food, water, electricity, and better educational conditions, like their peers around the world."

Milad, a programmer, is counting heavily on this decision because, as he put it, "Syria will finally be able to advance, open up, and keep pace with the world in all aspects, especially technology, instead of being stuck in a state of stagnation since 2011."

"Syrian youth are intelligent and creative, and have made a difference and achieved significant accomplishments in all the countries to which they have emigrated. Lifting the sanctions will give young people inside the country the opportunity to compete, showcase their skills, and contribute to development. It may also encourage young people abroad to return and participate in rebuilding their country," he said.

Finally, my suffering in collecting fees "from my clients in the Gulf will be over", said Reem, an architect pursuing a master's degree in design at Damascus University. She explained, "We and all those working remotely in Syria had a major struggle because of the boycott of all global financial transfer systems. But it will soon be resolved with the implementation of the decision to lift sanctions. In fact, we may give up our dreams of travel and immigration. Perhaps we will be able to contribute to helping our families, and live a happy old age after all the suffering we have all endured together."

George, a doctor at the Children's Hospital in Damascus, said, "It's enough for me to see new medical equipment and spare parts available, and for vaccines and essential medications to remain available in the market. What's more important is that the emigration of doctors and nurses stops or decreases now that decent salaries may be secured for them. Syrian citizens have the right to receive good healthcare after what they've experienced and suffered."

Syria: A long history of sanctions and siege

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U.S. sanctions on Damascus are not new. Washington designated Syria as a "state sponsor of terrorism" in 1979 due to its "support for Palestinian factions" and "interference in the Lebanese civil war."

In 2003, then-US President George W. Bush signed the Syria Accountability Act into law for its alleged "support for designated terrorist groups such as Hezbollah", accusations of developing weapons of mass destruction, and "support for armed groups in Iraq after the US-led invasion."

In 2006, US sanctions directly targeted the Syrian banking sector under the provisions of the Patriot Act, which the US adopted after the September 11 attacks.

In 2019, during his first term, Trump signed the Caesar Act, which imposed sanctions on the Syrian military and numerous Syrian officials.

The negative effects of these sanctions directly affected Syrian citizens, causing severe electricity rationing and shortages of essential goods such as medicines, medical equipment, and fuel for transportation and heating. This led to a flourishing shadow economy, a black market, and the smuggling of goods.

All financial transactions and transfers with Syria were prohibited.

The collapse of the currency and the freezing of assets also led to a collapse in the purchasing power of Syrian citizens and increased unemployment and poverty rates. Due to aviation restrictions and sanctions on air cargo companies, direct flights to Syria have diminished

The US administration has not yet released official details on the issue of lifting sanctions, but the US president typically has broad powers in foreign policy, including removing or imposing certain sanctions, such as asset freezes, travel bans, or sanctions imposed on specific individuals or entities. However, these powers remain limited vis-a-vis sanctions imposed under laws passed by Congress, such as the Caesar Act.

White House spokesperson Caroline Levitt revealed that Trump discussed with Sharaa, during the meeting, five main American demands from Syria: signing the normalization accords with "Israel", which the UAE, Bahrain, and Morocco had joined under American mediation; demanding that all “foreign terrorists” leave Syria; deporting Palestinian “terrorists”; helping the United States prevent the return of ISIS; and assuming responsibility for the organization’s detention centers in northeastern Syria.

Is it possible to build civil peace based on economic empowerment?

Economic expert Nazem Al-Yousfi confirmed to Al-Mayadeen English that the effects of this decision will take at least five months to begin to appear.

"The restoration of economic relations with the world will be reflected in the revitalization of foreign trade, the release of frozen Syrian assets abroad, and the return of foreign companies to invest in the country. The exchange rate of the Syrian pound will also improve, especially in light of expectations of large amounts of dollars entering the Syrian market and the Central Bank."

He added, "The lifting of sanctions will facilitate the gradual return of Syrian refugees from neighboring countries, such as Lebanon, Turkey, and Iraq, thus easing the burden on these countries."

Al-Yousfi pointed out that this decision will provide the government in Damascus with economic capabilities that will enable it to communicate with Syrians in northeastern Syria and the Sweida Governorate, and will contribute to strengthening the unity of the state on the ground.

He also expects an imminent start of the reconstruction process, "which will provide new job opportunities, increase GDP, improve living standards, and reduce the social gap."

Al-Yousfi said that any economic recovery will result in gradual social stability, reducing the need for migration and weakening the parallel economy and human, drug, and arms trafficking. This will pave the way for sustainable civil peace based on economic empowerment and social justice.

The opinions mentioned in this article do not necessarily reflect the opinion of Al mayadeen, but rather express the opinion of its writer exclusively.
  • Syria
  • US sanctions on Syria
  • Sanctions on Syria
  • Syrian economy
  • Syrian crisis
  • Donald Trump
Katia Ibrahim

Katia Ibrahim

Syrian journalist

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